Loxley Property Development has spent Bt100 million on remodelling its vacant office building on Sua Pa Road into a modern IT wholesale centre. The company awarded a three-year contract to experienced rentsal space developer VMVK Service to manage the area in the building, which was named VM Sua Pa.
Suroj Lamsam , managing director of Loxiey Property, said the company was seeking t squeeze more income from its assets.
"We're developing the project right now despite the unfavourable economic climate. if we had decided to wait for the economy to get better and then begin to develop it, it would be too late," he added.
Loxley Property made almost Bt100 million in revenue per year. It is whjolly owned by one of the country 's major trading houses, Loxley.
The first phase of the VM Sua Pa centre will opoen in September 15, covering the first two floors and one mezzanine floor.
VMVK managing director Kullawut viratmalee said the firs phase was already fully booked with over 100 tenants. The final phase, which will cover the remaining third, fourth and fifth floors, is expected to open in two months. The centre is expected to generate Bt3 million monthly revenue when the full phase is launched. Loxley Property expects the project to break even in three years.
The whole centre features 3,800 square metres and can accommodate over 200 shops. Monthly rent ranges from Bt2,000 per square metre per month to Bt7,000.
The VM Sua Pa building had been the head office of Loxley Group since 1945 before the head office moved to the Khlong Toei building in 1995.After that Loxley's subsidiaries moved into the buklding but they all moved out recently.
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